Industries with the Highest Profit Margin in Australia in 2022

1. Industry Superannuation Funds in Australia

Profit Margin 2022: 94.0%

Industry super funds are not-for-profit superannuation funds that operate for the benefit of their members. Revenue for the Industry Superannuation Funds industry has risen strongly over the past five years despite significant volatility. Several events created volatility for the industry at the start of the period, including the UK's EU referendum, which caused significant fluctuations in industry revenue. The industry's investment performance fluctuated but improved overall throughout much of the period prior to the COVID-19 outbreak. However, volatility during the pandemic led to an investment loss for industry super funds in 2019-20. Investment returns are expected to rebound strongly over... Learn More

2. Retail Superannuation Funds in Australia

Profit Margin 2022: 90.7%

The performance of the Retail Superannuation Funds industry has fluctuated significantly over the past five years. Industry revenue is expected to rise at an annualised 7.8% over the five years through 2021-22, to $75.3 billion. This trend includes a decline of 32.8% in the current year, following significant growth in 2020-21 as the industry rebounded from the investment losses incurred in 2019-20. Industry revenue is highly volatile, and fluctuations in investment returns can cause revenue shocks. Due to this volatility, revenue is not an accurate representation of industry performance and size. Funds under administration (FUA) provide a better indication, and... Learn More

3. Superannuation Funds in Australia

Profit Margin 2022: 82.3%

Australia's superannuation system underpins the nation's retirement income system. Three pillars make up the pension system: a means-tested age pension, compulsory super contributions and voluntary savings. From July 2022, the Superannuation Guarantee scheme requires employers to contribute an amount equal to 10.5% of an employee's income to the employee's choice of superannuation fund. This system has supported the Superannuation Funds industry over the past five years, which is expected to be one of the largest pension systems in the world.

Revenue is expected to fall at an annualised 10.6% over the five years through 2022-23, to $127.9 billion. This includes growth... Learn More

4. Financial Asset Investing in Australia

Profit Margin 2022: 49.6%

The Financial Asset Investing industry consists of trusts that primarily invest money on their own account in predominantly financial assets. The industry excludes trusts of separately constituted superannuation funds. The industry has benefited from a strong domestic sharemarket performance over the past five years. Typically, industry funds are invested in equities and industry revenue depends on global sharemarkets' performance. The COVID-19 pandemic and broader geopolitical tensions significantly disrupted both local and global equity markets, which limited industry performance. However, the industry's total assets increased over the period, assisted by historically low interest rates. Overall, Industry revenue is expected to rise... Learn More

5. Iron Ore Mining in Australia

Profit Margin 2022: 48.6%

The Iron Ore Mining industry has benefited from major increases in iron ore prices, and small increases in production volumes over the past five years. As a result, industry revenue is expected to increase at an annualised 14.5% over the five years through 2022-23, to total $165.8 billion. This strong revenue growth is due to demand strength from China, and despite the COVID-19 pandemic from late 2019-20 through 2021-22. However, the high revenue growth trend over the period includes an anticipated 13.4% fall in the current year, due to weaker iron ore prices and higher global output.

Over the past decade,... Learn More

6. Real Estate Investment Trusts in Australia

Profit Margin 2022: 45.6%

Firms in the Real Estate Investment Trusts industry manage publicly listed trusts, focusing largely on commercial property. These trusts typically trade as stapled securities listed on the ASX. Real Estate Investment Trusts (REITs) in the industry purchase and manage retail, office, industrial and other types of property. REITs generate rental income by leasing properties to businesses, and investment income through developing or selling properties. Rental income generated by industry firms is relatively stable, while investment income can fluctuate significantly every year. The industry has faced volatile trading conditions over the past five years, with the COVID-19 pandemic creating significant demand... Learn More

7. Toll Road Operators in Australia

Profit Margin 2022: 42.0%

Firms in the Toll Road Operators industry charge motorists for the right to access high-quality roads that reduce travel times. Revenue from individual toll roads is typically stable as individual assets grow in popularity with motorists over their lifetime and congestion and market acceptance boost toll road use and allow operators to raise prices and expand. However, industry revenue volatility can rise when new roads enter operation. The industry is capital-intensive, as tunnels, bridges and other expensive design features are often built on toll roads to save motorists time on their commutes. Ideally, tolling revenue is sufficient to cover both... Learn More

8. Online Car Classifieds in Australia

Profit Margin 2022: 38.4%

The Online Car Classifieds industry's growth has slowed over the past five years. New passenger vehicle sales have declined over the period as deteriorating economic conditions negatively affected credit availability, constraining industry demand. In particular, the COVID-19 pandemic drove a significant fall in industry revenue in 2019-20 as restrictions on movement and gatherings reduced demand for motor vehicles and accompanying classified ads. Nevertheless, online car classifieds operators have benefited from rising demand for online services, with online classifieds websites supplanting newspapers as the main resource for private car listings. Industry revenue is expected to increase at an annualised 0.3% over... Learn More

9. Online Advertising in Australia

Profit Margin 2022: 35.1%

The Online Advertising industry has grown strongly over the past five years, as consumers have become more frequent users of social media, web-based applications and other internet systems. Industry operators provide services through search engines, online applications, online videos, streaming services and online directories. The industry is moderately concentrated, with the top four players accounting for approximately 60% of revenue in the current year. Google is the dominant player, with its search engine advertising services attracting significant web traffic from consumers and businesses. Google also attracts significant advertising revenue from its online video service, YouTube. The outbreak of COVID-19 in... Learn More

10. Residential Real Estate Advertising in Australia

Profit Margin 2022: 34.4%

The Residential Real Estate Advertising industry involves the listing of residential properties available for lease or purchase. Listings are primarily offered online, however advertisements can also be published in print. Markets for the industry include home-owners, lessors and property developers. The industry has benefited from relatively positive treading conditions over the past five years. The increase to the number of housing transfers over the period has boosted revenue, as the industry's larger firms typically charge on a fee-per-unit basis. The popularity of the internet has benefited the industry's online segments and allowed for increasing market consolidation demonstrated by the industry's... Learn More